Support position interviews often ask this question as a way of determining if you know how to troubleshoot dayto-day Accounts Payable operations. the system will report these in the additional log.
.SAP FI/CO Interview Questions
Question 1: Additional Log
What is the additional log in the AP payment program and how can it be used for troubleshooting ?
A:
The additional log is an important setting when performing a payment run. due to either missing or incorrect master data settings. The amount of information stored in the log can be selected (see below).8-
.
If there are any errors with the payments run. negative balances due to credit memo’s etc.

For example in the payment program. a link can be created between the AP/AR subledgers for use in the payment program.SAP FI/CO Interview Questions
Question 2: Master Data
How can you link customer and vendor master records and what is the purpose of doing so ?
A:
On the customer master there is a field “vendor” and likewise on the vendor master there is a field “customer”. if a specific business partner is your vendor but also your customer. By entering these master data numbers. linking their master records together will allow the open AR invoices to be offset against the outstanding AP invoices.9-
. dunning routine and the clearing of open items.
.

The due date derived via the payment can be changed on each individual invoice if required
Question 4: Baseline Date
What is meant by a “baseline date” in SAP AR and AP ?
A: The baseline date is the date from which the payment
terms (specified in IMG transaction OBB) apply Usually this is the document date on the invoice but can also be the date of entry or posting date from the ledger
.SAP FI/CO Interview Questions
Question 3: Payment Terms
What are terms of payments and where are they stored ?
A: Payment terms are created in configuration and
determine the payment due date for customer/vendor invoices.10 -
. They are stored on the customer/vendor master record and are pulled through onto the customer/vendor invoice postings.

SAP FI/CO Interview Questions
Question 5: One Time Vendor
What are one-time vendors ?
A: In certain industries (especially where there are a high
volume of cash transactions). is keyed on the invoice itself. One-time vendors allow for a dummy vendor code to be used on invoice entry and the information which is normally stored in the vendor master (payment terms.11 -
. it is not practical to create new master records for every vendor trading partner.
. address etc) .

e. The decision needs to be made whether to assign an external number range (where the user chooses the master record number) or an internal number range (system assigned)
.SAP FI/CO Interview Questions
Question 6: AP Vendor Group
What factors should be considered when configuring an Accounts Payable Vendor Group ?
A: The following are determined by the creation of a new
AP vendor group (transaction OBD3) • Whether the vendors in this group are one-time vendors – i. optional or mandatory when creating vendors belonging to this group
•
Additionally the vendor number ranges defined in transaction XKN1 need to be assigned to your vendor account groups in transaction OBAS.12 -
. no master record is created but the address and payments details are entered against each invoice to this vendor Field status group – which fields on the vendor master are suppressed.

vendor accounts etc) Proposal Scheduling – the system proposes list of invoices to be paid Payment booking – the booking of the actual payments into the ledger Printing of payment forms (cheques etc)
Variations on the above may be found in different SAP customers. but the interviewer will be looking for the basis steps above.13 -
.SAP FI/CO Interview Questions
Question 7: Payment Run
Name the standard stages of the SAP Payment Run.
. payment methods.
A: The following steps are usually performed during the
payment run • • • • Entering of parameters (company codes.

14 -
. the following are pre-delivered:-
. There are many standard delivered SAP entries for each country.SAP FI/CO Interview Questions
Question 8: Payment Methods
What is the purpose of payment methods and where are they stored?
A: Generally payment methods are one digit
alphanumeric identifiers that indicate the type of payments made to vendors or received from customers. For example for the UK.

15 -
. (The default from master record can be changed during manual postings)
.SAP FI/CO Interview Questions
The payment methods are stored in the vendor/customer master record as well on vendor/customer line items.

Depending on the system configuration SAP will attempt to book these transactions automatically to the correct accounts to avoid the need for manual entries by SAP users. bank interest. cheques. bank charges. Any postings which the system cannot derive automatically can be booked through “post-processing”
. The file contains details of the company’s bank movements e.16 -
.SAP FI/CO Interview Questions
Question 9: Electronic Banking
Explain briefly how you can import electronic bank statements into SAP.
A: A text file is received from the bank which is then
uploaded into the SAP system. cash receipts etc.g.

SAP FI/CO Interview Questions
Question 10 : Residual Payments
In Accounts Receivable. invoice A123 is cleared for the full value 100$ and a new invoice line item is booked for the remaining balance of 40$. As an example. With partial payment. lets say invoice A123 exists for 100$ and a customer pays 60$. what’s the difference between the ‘residual payment’ and ‘part payment’ methods of allocating cash ?
A: These are the two methods for allocating partial
payments from customers.
. the 60$ simply offsets the invoice leaving a remaining balance of 40$ With residual payment.18 -
.

Popular correspondence types include customer statements. Within the most common AP/AR functions (such as ‘Display vendor line items’ below there is the option to generate correspondence requests.SAP FI/CO Interview Questions
Question 11 : Correspondence Types
What are correspondence types in AR/AP ?
A:
Correspondence types are different outputs which can be printed and sent to your business partners based around either customer vendor or GL information.19 -
. At the end of the working day these can be printed together as a batch and sent out. payment notices and line items lists.
.

Different letters can be printed in SAP depending on how far overdue the payment is. from a simple reminder to a legal letter.SAP FI/CO Interview Questions
Question 12: Dunning
What is “dunning” in SAP ?
A:
Dunning is the process by which payment chasing letters are issued to customers. SAP can determine which customers should receive the letters and for which overdue items.
.20 -
. The dunning level on the customer master indicates which letter has been issued to the customer.

21 -
. During configuration the following are determined • Whether the items booked with these reason codes are to be flagged as disputed items for the purposes of credit management (disputed items do not increase a customer credit exposure) The type of correspondence (if any) to be generated for this reason code as a result of the under/over payment Whether a separate line item should be created to charge off the payment differences to a separate G/L account.
• •
. They should not be confused with ‘void reason codes’ used when outgoing checks are generated.SAP FI/CO Interview Questions
Question 13 : Reason Codes
What are “reason codes” used for in the Accounts Receivable module and what are the factors to be considered in their configuration?
A: Reason codes are tags which can be assigned to explain
under/overpayments during the allocation of incoming customer payments.

22 -
.SAP FI/CO Interview Questions
Part III: Document Postings
.

SAP FI/CO Interview Questions
Question 14: Rate factors
What are exchange rate “factors” ?
A:
Exchange Rate factors are the relationships between one currency and another to which an exchange rate is applied. For example you may define the Indonesia Rupiah to US$ factor as 10000 : 1 Combined with an exchange rate of 0.23 -
.95 this would equate to 9500 IDR to 1 USD
.

SAP FI/CO Interview Questions
Question 15: Parking Documents
What is document parking and why is it important when consideration internal control procedures and “segregation of duties” ?
A:
Parking is a SAP term which means a posting (AP/AR/GL) can be temporarily saved (possibly with incomplete information) without hitting the affected ledger(s).
. A separate person can then release the posting to the ledger when required. before their supervisor checks it and books it to the ledger.24 -
. This is useful for example if junior staff are to initially enter the invoices. Another popular use is when entering GL journals with many hundreds of line items. The document can be partsaved allowing for completion at a later date.

an equivalent amount in local currency is calculated automatically by the system and stored in the field “local currency”. It is possible however to overwrite the system proposed value in this field manually. the currency key is entered.25 -
. a warning or error message is displayed (depending on system configuration)
.
A:
On the document header. If the local amount is manually overwritten.SAP FI/CO Interview Questions
Question 16: Document Currency
Explain the document currency (WRBTR) and local currency fields (DMBTR) when posting a document in SAP FI. If this is different from the entity currency (or local currency). and the difference between the implied exchange rate is sufficiently different to the rate used by the system.

By default exchange rate type “M” is used for the rates used to calculate local currency in the SAP system
.27 -
.SAP FI/CO Interview Questions
Question 18: Exchange Rate Types
What are exchange rate “types” in SAP ?
A:
Exchange rate types are how SAP categorizes the different sets of exchange rates in the R’3 system.

(The message can changed to be either an error or a warning)
.28 -
.SAP FI/CO Interview Questions
Question 19: Calculated Rate v Header Rate
During document postings. under what circumstances would SAP display the following warning / error message: “Calculated rate deviates from document header rate by x%”
A:
This occurs when the exchange rate in the document header (either entered by the user or derived from the exchange rate table) differs by a larger amount than that specified as the maximum tolerance.

SAP FI/CO Interview Questions

Question 20: Foreign Currency
When entering foreign currency FI transactions describe the various ways in which the exchange rate is derived by SAP

A:
• • •

The exchange rate can be entered via either:Directly on the document header Derived from the exchange rate table (by leaving exchange rate blank) Indirectly, by entering the explicit local currency amount so the system is forced to use a specific exchange rate

Question 21: FB50 vs. FB01
What is the difference between the Enjoy SAP document entry screens (e.g. FB50, FB60 etc) and the old general posting transaction (FB01)

A: The Enjoy SAP screens were created to expedite data
entry for AP,AR and GL postings.

- 29 -

SAP FI/CO Interview Questions

In the old FB01 screen users were required to enter document types and posting keys manually to determine the nature of the postings. In the Enjoy SAP data entry screens these are defaulted via a configuration table so the user just has to choose debit/credit and the system will default the posting key. The document type is determined based on whether the entry is a vendor/customer invoice/credit memo or GL journal.

Question 22: Validation Rules
What are FI validation rules ?

A: Validation rules (configured via transaction OB28)
enforce certain conditions when FI postings are made. Validation rules comprise:• • • A prerequisite event that has to occur for the validation check to take place The check itself The output message that is to be displayed (you can choose between a warning or error message)

For example you may wish to ensure that users only enter GL journals with document type ‘SA’ for a specific GL account 88510005 in company code A100. Your prerequisite would be if the GL account = 88510005 and company code = A100. The check would be that the document type = SA and in the event of an incorrect entry

- 30 -

SAP FI/CO Interview Questions

the message could be “Error – only document type SA allowed” You can enrich validation routines using ABAP code

Question 23: Internal Number Assignment
Explain the terms “internal number assignment” and “external number assignment” and the differences between them ? Why is it generally not a good idea to have external numbering on transactions ? A: “Internal” numbering means the R/3 system assigns the next available sequential number to the master data object or transaction posting. “External” means the user has to manually enter the number during the creation of the master record or the posting of the document. Entering the document number manually on each SAP financial posting is a time consuming effort and causes a risk to those transactions booked via interfaces. Often organizations want to do this to match source or legacy systems data with R/3. However there are plenty of text and reference fields available to store this information without requiring external numbering.

- 31 -

32 -
.SAP FI/CO Interview Questions
Part IV: General Ledger
.

SAP FI/CO Interview Questions

Question 24: Transporting Tax Codes
Explain the procedure for transporting tax codes and their associated rates between SAP system s A: Rather than simply attaching tax codes to a transport as per any other SAP configuration, a unique import/export routine needs to be followed which imports the settings into your productive SAP system The export routine can be found under within IMG transaction FTXP via transport > tax code > export / import The tax codes themselves have to be manually created in the target system. You leave the tax rates blank (your basis colleagues have to ensure your production system is open for configuration) and run the import routine. Note that the tax accounts have to be maintained manually in production also. This is a common interview question which can be quickly used to test those with previous FI/CO experience.

This indicates an increase in stock and a pending entry to be cleared once the invoice from the vendor arrives. At month end there will be a need to accrue those purchases received but not yet invoiced hence the reason for the account named ‘Good Received / Invoice Received’ Typically the balance on this account at month end indicates the value of goods received but not invoiced. Once the invoice is received the corresponding entry is booked. • Credit Vendor, Debit GR/IR

These opposite entries to the GR/IR need to be cleared against each other. (This account is managed on an open item basis). Using the F.19 transaction this can be done automatically by using the PO and line item number stored in the assignment field

- 34 -

SAP FI/CO Interview Questions

Question 26: Account Type Field
Explain the purpose of the account type field in the GL master record

A:

At year end P&L accounts are cleared down to the retained earnings balance sheet account. This field contains an indicator which is linked (in the IMG transaction OB53) to the specific GL account use in this clear down.

- 35 -

This is particularly useful for new SAP users who are still getting used to the new chart of accounts. This field
can be used to store the old legacy system’s account number against the new number in SAP.
. A standard search help exists which will allow users to search for the SAP account based on the old legacy account number.SAP FI/CO Interview Questions
Question 27: Alternative Account
What is the alternative account field used for in the GL master record ?
A: Another very popular interview question.36 -
.

The first is at ‘chart of account’ level (transaction FSP0) and contains the information used by all company codes using this chart of accounts such as description.
. The chart of accounts screen must be maintained before the local company code screens.37 -
. group account number etc. alternative account number etc.SAP FI/CO Interview Questions
Question 28: GL Views
What is the difference between the chart of account view and company code view when maintaining a GL account ?
A: There are two screens which have to be maintained for
each new GL account.g. field status group. Each company code using this chart will then add its own company code view (via transaction code FSS0) which contains localized data specific to that entity e.

They determine what value is populated in the ‘assignment’ field in the document line items posted. There are several standard entries in a pre-delivered SAP system and additional entries can be configured if required. For FI/CO jobs in a logistics environment this is a common question.
. vendor and GL
master records.38 -
. A very common use for sort key 014 Purchase Order number for example. is to allow the GR/IR clearing GL account to be cleared automatically.SAP FI/CO Interview Questions
Question 29: Sort Key
What is a sort key and what is it used for?
A: Sort keys are stored in customer.

39 -
. AP. 13 4-weekly periods. calendar months. Its possible to open and close specific ledgers e. GL and even sets of accounts within those ledgers. This way its possible to. They determine the financial reporting periods of an entity e. close all GL accounts and leave only the month end adjustment accounts open for posting
. 5-5-4 reporting etc
During month end the current fiscal reporting period will be and the next month opened.SAP FI/CO Interview Questions
Question 30: Fiscal Year Variant
What are fiscal year variants and how are fiscal periods opened and closed ?
A: Fiscal year variants (FSV’s) are assigned to a company
code via transaction OBY6.g. for example. AR.g.

16 and what are they used for ?
A: When you define the fiscal year variant you can choose
to define additional special periods.15.SAP FI/CO Interview Questions
Question 31: Special Periods
What are the special periods 13. Periods 1-12 can be closed and periods 13-16 left open during year end closing
. auditors adjustments etc.40 -
. These can be used for example for the posting of year end adjustments.14.

mandatory or suppressed.SAP FI/CO Interview Questions
Question 32: GL Status Groups
What are GL field status groups and where are they used ?
A: Field status groups are defined in configuration and
are used to determine which fields are available for posting when entries are booked against GL accounts. Each field can be set as optional.41 -
.
.

14
.42 -
.SAP FI/CO Interview Questions
Question 33: Recurring Entries
What are recurring entries and why are they used?
A:
Recurring entries (setup in FBD1 ) can eliminate the need for the manual posting of accounting documents which do not change from month to month. Usually multiple recurring entries are created together and then processed as a batch at month end using transaction F. For example. a regular rental expense document can be created which can be scheduled for the last day of each month.

there is a requirement to restate these amounts using the prevailing month end exchange rates.43 -
.
. Usually at month end. A batch input session is created to automatically post the required adjustments. SAP can revalue foreign currency GL account balances as well as outstanding customer and vendor open item balances. In SAP configuration. you define the balance sheet adjustment account and which accounts the realized gain/loss should be booked.SAP FI/CO Interview Questions
Question 34: Currency Revaluation
Explain how foreign currency revaluation works in SAP R/3 FI
A:
Over time the local currency equivalent of foreign currency amounts will fluctuate according to exchange rate movements.

SAP FI/CO Interview Questions
Question 35: Account Clearing
During GL account clearing how can small differences be dealt with ?
A:
During configuration a tolerance limit is set which defines the maximum differences allowed during clearing.44 -
. The differences can be automatically booked by the system to a specific account during posting (using IMG transaction OBXZ)
.

SAP FI/CO Interview Questions
Part V: Controlling (CO)
.45 -
.

sold to a customer account in the accounts receivable module (F-92).SAP FI/CO Interview Questions
Question 36: Disposing Assets
Describe three ways of disposing of an asset from a company code in SAP R/3
A:
An existing asset can be scrapped (transaction ABAVN). Which fields are included in the AAM layout can be configured using O7E3
.
Question 37: Account Assignment Models
What are account assignment models ?
A:
AAM’s are blocks of document line items that can be used repeatedly to prevent manual re-entry. sold with revenue but the revenue is booked to a GL account (ABAON).46 -
. transferred to another company code (ABUMN).

you can lock
plan data for a specific fiscal year
Select version 0 and choose ‘settings for profit center accounting’.
. Note the interviewer will not expect you to remember the transaction code but will expect you to refer to ‘versions’ and the fact that the plan can be locked per fiscal year and independently of the actual data.SAP FI/CO Interview Questions
Question 38: CO-PCA
In Profit Center Accounting (CO-PCA) explain the process for locking planning data
A: Using transaction S_ALR_87004395.47 -
.

The interviewer will be looking for some of the following:• AB can easily be reconciled with FI at account level through the use of cost elements. Timing differences can occur if the goods issue and billing documents are in different posting periods. In AB the value posted in the stock change is posted simultaneously to COPA. sales deductions etc) as values are stored in “value fields” as opposed to accounts In CB data is stored by posting periods and weeks.SAP FI/CO Interview Questions
Question 41: COPA Basis
What is the difference between “costing based” (CB) and “account based” (AB) CO-PA ?
A:
This is an incredibly popular question for any positions with a COPA component. company code currency and transaction currency In CB you can create cross controlling area evaluations or cross controlling area plans. In AB storage is only by periods. In AB transactions are stored in controlling area currency. CB can only be reconciled at account group level (such as revenues. In CB the cost of good sales (COGS) are updated via material price valuations. Stock change values can be transferred to CB COPA during billing.49 -
.
• •
• •
. In CB transactions can be stored in operating concern currency and company code currency. In AB you cannot as the chart of accounts may differ.

For example for employees we define statistical internal orders and for departments we define cost centers.
Question 43: Internal Orders
What are statistical internal orders?
A: Statistical real internal orders are dummy cost objects
used for analysis and reporting purposes.e. It is assigned to a controlling area on a one to may basis i. one controlling area may be assigned to only one operating concern. one operating concern can be assigned to many controlling areas.50 -
. Travel expense invoices can then be booked to specific cost
. They must be posted to in conjunction with a real cost object such as a cost center.SAP FI/CO Interview Questions
Question 42: Operating Concern
What is an operating concern and what is its relationship with a controlling area in CO ?
A:
The operating concern is the main organizational unit in Profitability Analysis. It’s structure depends on the configuration setup of characteristics and value fields.

51 -
. Statistical internal orders cannot be settled.SAP FI/CO Interview Questions
centers but analysis can also be done at employee level by looking at the statistical orders.
.

53 -
. The most important thing
. Anyone involved in a full COPA project lifecycle in a retail or manufacturing environment will have come across such issues hence the reason the interviewer is asking the question.SAP FI/CO Interview Questions
Question 45: Performance Issues
What are the performances issue to be in mind when configuring Profitability analysis (COPA) ?
A: Sometimes COPA reporting performance is severely
affected by poor initial setup.

SAP FI/CO Interview Questions
Question 46 : Internal Order Controls
Explain some of the controls setup during the configuration of Internal Order Types in the CO module.
A: The following settings are made during the
• • • •
configuration of order types (transaction KOT2_OPA) Number ranges assigned to the order master on creation Planning and budgeting profiles Status profiles Order layouts
.54 -
.

B.B. Hence your sender cost element is D in your CO reporting and not A.
A: Its easiest to demonstrate this by way of an example
Lets say we have three cost elements with the following amounts to be allocated:A Electricity $2000 B Water $3000 C Canteen Costs $4000 With assessment cycles the system groups all three together and summarizes the balance of 9000$ onto a separate cost element e.
. Distribution
Explain the differences between ‘Assessment’ and ‘Distribution’ cost allocation cycles in the R’3 CO module.SAP FI/CO Interview Questions
Question 47: Assessment vs. D in order to allocate the costs to a receiving cost centre.g.55 -
.C With distributions the costs are allocated from the original cost elements.C. Hence your senders are A.

The RL program can then either post automatic corrections or you can choose to post manual corrections based on the information in the RL report. A report is produced by the RL program. identifying where transactions have been booked across entities in controlling that would impact the external reporting produced from the FI module.
.SAP FI/CO Interview Questions
Question 48: Reconciliation Ledger
What is the CO reconciliation ledger and when would you typically use it ?
A:
The reconciliation ledger effectively highlights differences by account across the FI and CO modules.56 -
.

A:
Often companies that use COPA have extremely large volumes of data and reports can take several minutes.
.SAP FI/CO Interview Questions
Question 49: Freeze Data
Explain how using the “freeze data” option in COPA can speed up reporting performance.57 -
. This way re-running the report online during the working data will see huge performance benefits as the system simply has to display stored stored and not recalculate it “on-the-fly”
Questions regarding performance issues in COPA are common. You may be asked how summarization levels can increase reporting speed or alternatively asked to explain how you’ve minimized the number of characteristics with the same aim. even hours. The ‘free report data’ option can be selected and the report run overnight. to run.

. When utility costs are allocated across various departments we could perform the percentage allocation based on the ‘head count’ SKF. For example we may have an SKF for ‘head count per department’.SAP FI/CO Interview Questions
Question 50: Statistical Key Figures
What are statistical key figures in CO ?
A:
SKF’s are statistical (or information values) used in cost allocations such as assessments and distributions.58 -
.

SAP FI/CO Interview Questions
Part VI: Fixed Assets (FA)
.59 -
.

However there is a configuration transaction OAK5/ OAMK which can be used to temporarily remove the reconciliation flags to allow the balances to be journal’ed onto the fixed asset reconciliation accounts.60 -
. Note this is a very popular interview question for FI/CO roles with FI-AA components.
.SAP FI/CO Interview Questions
Question 51: Fixed asset reconciliation
How do you take the balances onto fixed asset reconciliation accounts during data take-on ?
A: Normally you cannot post direct to reconciliation
accounts.

SAP FI/CO Interview Questions
Question 53: Sub assets
What are sub-assets and what would be a typical use for them in the SAP environment ?
A: Sub-assets are four digit reference numbers that are
linked to the main asset number.000 a sub-asset asset 0001 could be created and used to book additional cost (maybe a machinery upgrade) against the original asset. When running the asset reports you can either run for the 31000050 asset or together with the sub asset 310000500001 If you have multiple sub-assets you can report based on 31000050-* Using this approach asset components cost can be stored separately but reported together. Note that these sub-assets are depreciated independently of their main asset – this is a popular interview question. For example. Both assets exist separately and can be reported as such or together.
. if an asset 31000050 exists for a piece of machinery which initially cost $100.62 -
.

Following completion their costs can be settled to other fixed assets or to other CO cost objects such as real internal orders or cost centres. before being settled to an asset under the “buildings’ asset class at the end of the project.SAP FI/CO Interview Questions
Question 54: Asset Under Construction
What is an “asset under construction”
A:
AuC’s can be used to track investment cost during projects or asset assembly. the construction of a new building.63 -
. AuC’s generally are not depreciated until completion. For example. the various costs involved (engineering.
. utlity cost etc) could be collected under an AUC.

SAP FI/CO Interview Questions
Question 55: Evaluation Groups
What are evaluation groups on the asset master used for ?
A: Allocation groups can be used to categorize assets
whichever way the user chooses.
In customizing you can choose which of the 5 fields to display on the asset master record
. If you wish you can define a list of entries to be validated when the user populates these fields. There are 4 with four characters (configured via OAVA transaction) and 1 with 8 characters (configured with OAV8).64 -
.

SAP FI/CO Interview Questions
Question 56: Fixed Asset Depreciation
What cost objects can be posted to automatically when the Fixed Asset Depreciation run is performed ?
A: In IMG
• • •
transaction OAYR you can choose to allocate depreciation cost to :Cost centers Internal Order Both of the above
The cost centers or order used is stored on the respective asset master record
.65 -
.

In IMG OAYR setting the smoothing flag forces the system to calculate depreciation evenly ov er the remaining periods in the fiscal year.
.66 -
.SAP FI/CO Interview Questions
Question 57: Smoothing and Catchup
Explain the terms “smoothing” and “catchup” with regards fixed asset depreciation
A: This question refers to how SAP handles under/over
depreciated assets with respect to future depreciation runs. The opposite of this is with catch-up which means the system will correct any under/over depreciation in the next fiscal months depreciation run.

Question 59: Financial Statement
What is a ‘financial statement version’?
A:
Financial statement versions ‘FSV’s’ are the structures forming the P’L and Balance sheet reports from the FI module. Depending on the setup debit/credit balances can be reflected in different asset / liability columns where required
.SAP FI/CO Interview Questions
Question 58: FI Global Settings
What is the difference between ‘company code’ and ‘company ID’ when in the FI global settings in the IMG ?
A: The company code is the legal entity organization unit
and the lowest level at which external financial statements are prepared. The company id is a higher organization unit used for consolidation in the SAP system. A single company id can have many company codes assigned to it so long as the fiscal year variant and chart of accounts is consistent. Accounts are assigned to the end nodes in the reporting structure tree.68 -
.

. Here. the most straightforward
way of creating a new company code is to copy an existing value. Transactional data of course is not copied. All associated data such as the fiscal year variant and assignments to controlling area and credit control area are taken across from the source value. interviewers are simply looking to hear the word “copy” to prove that you have defined a SAP FI/CO organizational structure before.69 -
.SAP FI/CO Interview Questions
Question 60: New Company Code
How do you define a new company code ?
A: Using transaction code EC01.

This is a time consuming and expensive process Creating duplicate entities and transferring opening balances and year to data line items across.70 -
. You would be surprised how often interview candidates state “you would change the settings in configuration”. Generally such changes cannot be done. how can this be achieved?
A: This is a little bit of a trick question.
The above applies for other such changes as modifying the local currency of an entity or merging several controlling areas. Questions such as these are not designed to deliberately send you down a blind alley but rather they act as a quick way to work out whether a candidate has simply dabbled around in the FI/CO modules or whether they have a
. The interviewer
here is checking your knowledge of modifying an existing organizational structure in an existing live SAP system.SAP FI/CO Interview Questions
Question 61: Chart of Accounts
If several chart of accounts are in use in a SAP system and there is a requirement to merge them to a single chart. The only options are:• • Using specialist SAP consultants and their own ABAP tools to perform the conversion.

72 -
.SAP FI/CO Interview Questions
Question 62: What is stored in table T001 ? A: This is the main company code configuration table and
includes such assignments as:• • • • Fiscal year variant Company assignment Local currency setting Credit control area
Question 63: Company Code
What is a company code ? Describe its relationship with a controlling area
A: A company code represents a specific legal entity for
financial reporting purposes and represents the lowest level at which external financial accounts can be produced. One company code may only be assigned to a single controlling area. It’s the main organizational object in the FI module and is assigned to a controlling area in CO. (A controlling area may have multiple company codes assigned to it)
.

.SAP FI/CO Interview Questions
Question 64: SD and AR
Explain briefly how the Sales and Distribution modules creates Accounts Receivable line items for invoice postings.
A: Following the creation of a sales order.73 -
. Credit Stock
Once the invoice (billing document) has been created in the SD module. the following entry is booked into the Accounts Receivable module • Debit Customer. its possible to pass the sales order number or billing document number onto the AR posting for tracing and analysis purposes. Credit Revenue
Using copy rules in SD. a goods issue is
performed to issue the items out of stock. The above is a very basic example and can vary depending on the system setup however if you are being interviewed for a role with SD integration expect questions similar to the above. This typically generates the following FI entry:• Debit Cost of Sales.

74 -
. Credit GR/IR clearing
receipt is booked to indicate the arrival of the stock from the vendor. Credit Vendor
This is the classic MM to FI data flow and can vary on system setup. an entry is created in the AP module • Debit GR/IR Clearing.
. This typically creates the following posting:-
Once the invoice is received from the vendor and booked in the invoice verification module in MM. However for positions with integration to the logistics modules questions like this will almost inevitably pop up.
A: Following the creation of a purchase order.SAP FI/CO Interview Questions
Question 65: MM and AP
Explain briefly how the Materials Management module creates Accounts Payable line items for invoice postings. a good
• Debit Stock.

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.SAP FI/CO Interview Questions
Question 66: Batch Input
Explain what ‘batch input sessions’ are. In background the system tries to create the data for the entire batch and reports errors following completion. Batch input sessions are used extensively throughout the FI/CO modules including:• • • • • Depreciation run Recurring entries CO reconciliation ledger Master data creation in FI/CO FX revaluation
Foreground/background refers to how the users view the data being created by the SAP system. some examples of where they are used in FI/CO and the terms ‘background’ and ‘foreground’ processing.
A:
Batch input sessions are batches of SAP data (either master data or transactional data) generated through an interface/report/bespoke user application. In foreground the user can step through each screen during data creation and correct any errors as they occur. For example when creating cost elements automatically using SAP transaction OKB2/OKB3 the system creates a batch session containing all the data required.
.

21 for Purchase Requisition Commitments and type 22 for Purchase Order Commitments) in the CO tables and can be reported separately in report painter It’s also possible to post manual commitment values in order to report non-PO related expenditure commitments.
.g.SAP FI/CO Interview Questions
Question 67: Commitment Line Items
What are ‘commitment’ line items in CO ?
A:
Commitment line items in CO are not actual cost items but rather committed expenditure items generated through purchase orders.76 -
. They are flagged with a unique value type (e.

77 -
.
. FI data can be
transferred for a particular company code. how can you retrospectively populate FI data for a previous fiscal year ?
A: Using SAP transaction GCU1. GCU3. fiscal year or specific document number range. A similar transaction exists for controlling data.SAP FI/CO Interview Questions
Question 68: Special Purpose Ledger
When defining a new ledger in the Special Purpose ledger.

SAP FI/CO Interview Questions
Question 69: Using Special Purpose Ledger
What is the special purpose ledger and what would be some reasons for using it ?
A: The SPL is a user defined ledger which can be built to
support reporting requirements which cannot normally be met through the usual SAP modules. Typical uses include:• • • Reporting using an alternative fiscal year variant other than the one assigned to the entity.78 -
. You can pull information from many SAP modules such as FI. CO. Reporting in a different currency (maybe to meet a new head office reporting currency) Meeting USGaap and local reporting requirements
. SD and build user defined fields whose contents are based on calculations from other SAP standard information. MM.

document number etc BSEG is the associated line item table to BKPF. It stores all the fields common to all of the document line items such as posting date.
. BKPF. BKPF. by fiscal year. GLT0
A:
BKPF is the document header table. GL account. GLTO
Explain the purpose of the following SAP R/3 FI tables: BSEG. GLT0 is the summarized account balances table showing account balances by period. Questions regarding tables may seem overly technical but interviews can quickly ascertain whether a potential candidate has worked in a pure end user role or in a hands on configuration role. by account. currency key. Specific line item information such as posting key. document amount are stored.SAP FI/CO Interview Questions
Question 70: BSEG.79 -
.

internal orders etc The interviewer is unlikely to ask any technically difficult questions but most experienced FI/CO team members who have been through a data migration stage will have at least a basic understanding of LSMW. customers.
.SAP FI/CO Interview Questions
Question72 : LSMW
What is the Legacy System Migration Workbench (LSMW) and when would you use it in your SAP FI/CO rollout ?
A: LSMW is a technical tool used for migrating master
data and transaction data from your old ‘legacy’ systems to SAP. cost centers. the LSMW projects are usually run by FI/CO project team members in order to upload vendors. Though usually setup by your ABAP programming colleagues.81 -
.

82 -
. SD billing docs etc) Dynamic (as above but including open sales orders not yet delivered over a particular time period) Maximum sales order or delivery specified Critical field check (for such fields as payment terms) Next Review Date – checks the review date stored on the customer master AR open items – checks existing overdue items on the customer account Highest dunning level – specifies a max dunning level allowed
. Most of the configuration sits in the SD IMG menu under Sales and Distribution > Basic Functions > Credit Management/Risk Management > Credit Management > Define Automatic Credit Control The following are the standard credit checks available • • • • • • • Static (a simple check against customers credit limits of the total AR open items. Where does most of the credit management information sit in the IMG ?
A: Credit management is one of the key integration areas
between the Sales and Distribution modules (SD) and financial accounting (FI).SAP FI/CO Interview Questions
Question 73: Credit Checks
Describe some of the standard credit checks available within SAP.

When the program is run. For example in the fixed asset module lets say the gain/loss from disposal is normally booked to GL account 65410. During posting however you wish to book certain asset retirement transaction types to 65499 for reporting purposes.SAP FI/CO Interview Questions
Question 75: User Exits
What are user exits and name an example where one could be used in the FI/CO modules
A: User exits are SAP supplied ‘hooks’ within specific
program which allow user customizations to meet specific requirements. However for those who have worked across several SAP projects its inevitable that at some point they will have come across user exits at some stage even if its just at a conceptual level. User exits are commonly used also with validation and substitution rules. An enhancement AINT0002 exists to do this. To implement user exist you need an understanding of the ABAP programming language.85 -
. SAP checks to see if the user has setup any logic within these hooks.
.

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SAP FI/CO Interview Questions

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